SUPREME COURT OF INDIA
K.V. VISWANATHAN, ALOK ARADHE, JJ.
Jaspal Singh – Appellant
Versus
Ashwani Kumar – Respondent
Civil Appeal Nos. 2448 - 2449 of 2023
Decided On : 14-07-2026
(A) Civil Procedure Code, 1908 – Section 100 – Second Appeal – Scope and ambit – First Appellate Court is final Court of fact – High Court, in a Second Appeal cannot interfere with findings of fact merely because it would have arrived at a different conclusion on appreciation of same evidence – Interference is permissible only where findings are recorded without evidence, or by ignoring material evidence, or are otherwise vitiated by perversity – Finding of fact will not be disturbed unless it is vitiated for want of perversity. (Para 15)
(B) Specific Relief Act, 1963 – Section 20 – Agreement to Sell – Suit for Specific Performance – Mere naming of an amount which may sound in damages is not, by itself, sufficient to defeat claim for specific performance unless it is clear on facts that sum was named in lieu of performance – There is neither any language of election, nor any stipulation entitling respondent to discharge bargain, at his option, by payment of any sum in lieu of executing Sale Deed – Agreement to Sell stood admitted – An omission bearing on a collateral transaction cannot be permitted to do work of positive proof of fraud that respondent himself failed to discharge. (Paras 20, 21 and 24)
(C) Specific Relief Act, 1963 – Section 20 – Agreement to Sell – Suit for Specific Performance – A co-owner’s undivided share in immovable property is a valid and marketable subject matter of transfer and Agreement to Sell such a share cannot be viewed with suspicion merely because vendor’s co-sharer brother was not made a signatory – Transfer of undivided share is a legally recognised and enforceable transaction in its own right – Mere fact that subject matter of Agreement was an undivided half share in a jointly owned property cannot support an inference that transaction was not genuine – Extensions of time granted by consent, without more, are wholly consistent with genuineness of transaction cannot, by themselves, found an interference to the contrary – Findings on execution of Agreement, on appellant’s readiness and willingness, and on falsity of respondent’s defence were pure findings of fact, unassailable in second appeal – High Court erred in reopening them without characterising them as perverse. (Paras 25, 26, 27, 28, 29 and 30)
Facts of the case:
Present appeals which emanate from a judgment passed in Regular Second Appeal and an order passed in Review Petition by High Court of Punjab & Haryana at Chandigarh in RSA No. 3619 of 2012 (O&M) and RA-RS No. 87 of 2019 take exception to the judgment dated 08.02.2019 and order dated 10.07.2019 respectively, by which Regular Second Appeal filed by respondent was allowed and review petition filed by the appellant has been dismissed.
Findings of Court:
Judgment dated 08.02.2019 passed in RSA No. 3619 of 2012 (O&M) and Order dated 10.07.2019 passed in RA-RS No.87 of 2019 passed by High Court are quashed and set aside. Judgment and decree dated 01.05.2012 passed by First Appellate Court in C.A. No.0100204 of 2010 is restored.
Result : Appeals allowed.
| Table of Content |
|---|
| 1. factual history and procedural background of the specific performance suit. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 2. parties' contentions regarding contractual interpretation and procedural validity. (Para 12 , 13) |
| 3. interpretation of earnest money clauses under section 23 of the specific relief act, 1963. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21) |
| 4. jurisdictional limits of the high court in second appeal under section 100 of the cpc. (Para 22 , 23 , 24 , 25 , 26 , 27) |
| 5. final determination and correction of legal errors by the appellate court. (Para 28 , 29 , 30 , 31) |
JUDGMENT :
ALOK ARADHE, J.
1. These appeals which emanate from a judgment passed in Regular Second Appeal and an order passed in Review Petition by the High Court of Punjab & Haryana at Chandigarh (“High Court”) in RSA No. 3619 of 2012 (O&M) and RA-RS No. 87 of 2019 take exception to the judgment dated 08.02.2019 and order dated 10.07.2019 respectively, by which Regular Second Appeal filed by the respondent was allowed and the review petition filed by the appellant has been dismissed.
FACTS
2. The appellant (plaintiff) entered into an Agreement to Sell dated 22.06.2003 with the respondent (defendant) for purchase of land admeasuring 12 marlas, on which a factory stood, situated at village Gowar/Gohwar, Tehsil Phillaur, District Jalandhar, Punjab (“the subject property”). The respondent, a co-owner of the subject property along with his brother, agreed to sell his half share for a consideration of Rs.12,50,000/-. An earnest money amount of Rs.9,00,000/- was paid by the appellant at the time of execution of the Agreement, which stipulated 22.06.2004 as the date for execution of the Sale Deed, further providing that if the Sale Deed could not be executed for any reason, the respondent would refund the earnest money.
3. By a further Agreement dated 21.06.2004, the date for execution of the Sale Deed was extended by mutual consent to 22.07.2004. A third Agreement dated 21.07.2004 recorded the receipt by the respondent of a further sum of Rs.60,000/-, extended the date for execution of the Sale Deed to 22.01.2005 for payment of the balance consideration, and provided that all other terms of the first Agreement would continue to apply.
4. The appellant appeared before the Sub-Registrar on 20.01.2005 and 24.01.2005 – the Sub-Registrar’s office having remained closed on 21.01.2005, and 22.01.2005 and 23.01.2005 being Saturday and Sunday respectively, but the respondent did not attend.
5. In 2006, the appellant instituted a suit for specific performance of the contract founded on the Agreement dated 22.06.2003 and its extensions dated 21.06.2004 and 21.07.2004, with an alternative prayer for recovery of Rs.19.20 lakh (Rs.9.60 lakh as earnest money and an equal sum as damages).
6. The respondent, in his written statement, denied execution of the Agreement and pleaded that true market value of the subject property exceeded Rs.50 lakh. He asserted that the documents were executed as collateral security for a separate arrangement to facilitate his travel abroad through a travel agent associated with the appellant, under which he had signed blank papers and issued a cheque as security for a Rs.15,50,000/- transaction, and that the appellant, in connivance with the deed-writer and marginal witnesses, converted these blank papers into an Agreement to Sell.
JUDGMENT OF THE TRIAL COURT
7. By judgment and decree dated 30.04.2010, the Trial Court held that the appellant had proved execution of the Agreement to Sell and its extensions, that the respondent had accepted Rs.9 lakh as consideration, that the date for execution of the Sale Deed stood validly extended up to 22.01.2005 and that the appellant was ready and willing to perform his obligations. It nonetheless held that the Agreement did not provide for enforcement of the Sale Deed through the process of law in the event of default, but only for the refund of the earnest money, and accordingly declined s
M.L. Devender Singh & Ors. v. Syed Khaja
P.S. Ranakrishna Reddy v. M.K. Bhagyalakshmi and Anr.
Man Kaur (Dead) by LRs. v. Hartar Singh Sangha
Inderchand Jain (Dead) through LRs. v. Motilal (Dead) through LRs
Chander Bhan (D) through LRs. Sher Singh v. Mukhtiar Singh & Ors.
Pankajakshi (Dead) through LRs. & Ors. v. Chandrika & Ors.
Kirodi (Since Deceased) through LRs. v. Ram Parkash & Ors.
Satyender & Ors. v. Saroj & Ors.
Kannan (Dead) through LRs. & Ors. v. V.S. Pandurangam (Dead) through LRs. & Ors
Pankaj Bhargava & Anr. v. Mohinder Nath & Anr.
Chandrabhan (Deceased) through LRs. & Ors. v. Saraswati & Ors.
Zarina Siddiqui v. A. Ramalingam
T. Ravi & Anr. v. B. Chinna Narasimha & Ors. and Jayakantham & Ors. v. Abaykumar
Sir Chunilal v. Mehta & Sons, Ltd. v. Century Spinning & Manufacturing Co. Ltd.
Kondiba Dagadu Kadam v. Savitribai Sopan Gujar & Ors.
Jaichand (Dead) Through LRs. & Ors. v. Sahnulal & Anr.
Russi Fisheries P. Ltd. & Anr. v. Bhavna Seth & Ors.
Kamal Kant Jain v. Surinder Singh (Dead) Through LRs.
Sitaram Motilal Kalal v. Santanuprasad Jaishankar Bhatt
Sidheshwar Mukherjee v. Bhubneshwar Prasad Narain Singh & Ors.
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.